Plaxico Burress Eyes Short Sale on Florida McMansion

Plaxico Burress once was a handsomely paid rising star in the NFL until a fateful night in 2008. Now, the former wide receiver stands to lose millions on a waterfront mansion in Lighthouse Point, Fla.

The story of Burress’ real estate woes has its twists and turns. The embattled wideout originally paid $3.995 million for the mansion in September 2005, after five years with the Pittsburgh Steelers and a few months removed from inking a six-year, $25 million free-agent contract with the New York Giants. However, in November 2008, Burress accidentally shot himself in the leg while carrying a handgun at a New York City nightclub. He was suspended and lost his salary from the Giants and then pleaded guilty in August 2009 to felony charges stemming from the shooting incident. He served two years in prison until his release in 2011.

While serving his sentence, a mortgage lender, Deutsche Bank, filed documents to foreclose on Burress’ 6,900-square-foot Lighthouse Point home in January 2010.

Mr. Burress has an Option Arm mortgage product (that is one of those Negative Amortization Loans) and which is tied to the LIBOR index. Basically, in simple terms, Plaxico Burress has been deferring the mortgage interest (provided he made the minimum payment only option on the mortgage loan) which would then get added to the back end of the mortgage loan – increasing the total overall principal loan amount.

The home was put up for sale for $3.1 million and was, at one point, offered for as little as $1.565 million. But despite the listing, it appears Burress managed to keep the property. The home is now back on the market, MLS-listed and categorized as a $2.3 million short sale. Built in 2005, the five-bedroom Venetian-style home features marble flooring and a stained-glass dome in the entryway. In-house luxuries include a master suite with a sun deck, a media room, an office and an elevator. Outside, the home has a full cabana bath, a pool and a private 100-foot dock.

Burress also had a house in Virginia Beach, Va., that is another story. In April 2013, a circuit court ordered Burress to auction off the Virginia Beach property due to a judgment stemming from a 2008 traffic accident in Florida. The property, valued at $460,000, was to be auctioned off in order to satisfy the $159,000 judgment. Burress later sold the home before the auction date for $480,000.

After latching on with the New York Jets in 2011 and the Steelers again in 2012, Burress was set for another year in Pittsburgh after signing a one-year contract in March. However, the wide receiver suffered a torn rotator cuff during training camp and was shelved for the year.